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    0 starsmike | Shared With: Everyone - Jul 19 2008 | labor laws, internships, wages, minimum wage, startups
    Business & Technology | Hiring interns for free labor is a no-no | Seattle Times Newspaper

    Great article on the dangers of hiring "unpaid interns". Besides not being "fair" - it's also illegal. Employers should not be asking their employees to work for less than minimum wage if they are producing valuable work product for them.

    About the only safe thing is to have interns shadow an employee to watch them work. You could also offer them training, and have them work on independent projects that are non-commercial.

    Any non-founder employee at a startup also needs to be paid at least minimum wage (though this may be able to be paid in equity - check with your lawyer).

    Quoted: "All it takes is one disgruntled intern, or their parent or spouse or friend, to call the U.S. Department of Labor, and the company who follows this type of exploitative advice is toast,"

  • vote
    2
    0 starsmike | Shared With: Everyone - Jun 14 2008 | internship, legal, minimum wage
    Fisher & Phillips LLP - Solutions at Work - Do Your Internships Comply With Wage-Hour Law?

    Sounds to me like some companies are abusing the "internship" status of summer students to get unpaid labor that violates federal labor laws and minimum wage standards.

    I think if companies are primarily hiring students to do work for them, they should be compensated by at least paying them minimum wage.

    A true internship has to PRIMARILY benefit the student - and not the "employer". Students certainly desire to get real-world work experience - but why should they do so when they are providing real-world value to their employers in the process.

    Quoted: If the school or other employer is the primary beneficiary, the individuals will be considered employees, but if the interns are the ones who primarily benefit from the work experience, they will be considered trainees.

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